Introduction to human resource management

Leaving.

HRM is the strategic management of a business’s workforce, including recruitment, training, appraisal, rewards and employee relations.

Long-term HR planning that aligns staffing and HR policies with the business’s overall objectives.

Recruitment and selection — attracting applicants and choosing the most suitable candidate.

Objectives.

Day-to-day HR activities such as payroll, scheduling, handling grievances and running interviews.

Planning workforce needs and training for a new factory opening in two years.

Training and development — improving employees’ skills and knowledge to raise performance.

Day.

Recruitment and selection; training and development.

Processing payroll or resolving an employee grievance this week.

Monitoring employee performance against targets, giving feedback and setting new objectives.

Because managing employees effectively helps the business achieve long-term objectives and remain competitive.

Link the HRM function to the specific business context and explain the impact on performance/motivation/costs.

It helps the business have the right number of employees with the right skills to meet future goals and stay competitive.

Attracting.

Filling a vacancy with an existing employee (e.g. promotion or transfer).

Recruitment is the process of finding and attracting suitable candidates to fill a job vacancy.

Job.

To identify what the role involves and what skills/qualifications are needed before hiring.

It is faster and cheaper, and the employee already understands the business culture.

Person.

It limits the pool of candidates and can create resentment or another vacancy elsewhere.

About the job — duties, responsibilities, conditions, hours, location and pay.

About the person — qualifications, experience, skills and personal qualities needed.

Faster.

Filling a vacancy with someone from outside the business (e.g. job adverts, agencies).

It is more expensive and risky because the new employee may not fit the culture and needs induction.

Shortlist applicants and select the best candidate (often using interviews/tests).

State the method (internal/external), explain one advantage and one disadvantage, then apply to the case.

Higher productivity because employees work more efficiently and make fewer mistakes.

Training is developing employees’ skills and knowledge to improve job performance.

New.

Training given to new employees when they join, covering policies, health and safety, and basic job procedures.

Employees feel valued and see progression opportunities, so they are less likely to leave.

Working.

Away.

Learning while doing the job, usually guided by an experienced colleague.

Financial cost such as course fees, trainer time, materials and lost working time.

Because returns can come through higher quality, productivity, motivation and retention over time.

It is practical and directly relevant to the role, and is usually cheaper than external courses.

Motivation.

Choose the most suitable training type, explain one benefit and one limitation, and apply to the case.

It can be expensive and employees are away from productive work while training.

Employees may leave and take their new skills to a competitor.

They receive feedback and know how to improve, which can increase motivation and performance.

A formal process where an employee’s performance is assessed against agreed targets and standards, usually in a meeting with their manager.

Formal.

It creates a formal record of performance to support pay rises, promotions or training decisions.

Development.

Ongoing feedback focused on development and improvement, identifying training needs and setting new goals.

It can be time-consuming and costly, especially in large organisations.

Promotion.

A summary judgement of performance over a period (e.g. annual review), often linked to pay, promotion or disciplinary action.

Bias or personal preferences can affect a manager’s judgement, so ratings may not reflect true performance.

Multiple.

Feedback collected from multiple sources such as managers, peers, subordinates and sometimes customers to give a rounded view.

The impact on motivation — a well-run appraisal motivates, but a poorly run one demotivates.

Review performance against objectives and set new targets (also discuss strengths, improvements and training needs).

Motivation.

Behaviour.

Investigation — gather facts about the alleged misconduct or poor performance.

Dismissal is when an employer ends employment because of the employee’s behaviour, misconduct or poor performance.

Formal warning — inform the employee in writing about the issue and expected improvement.

Redundancy is when a job role is no longer needed, so employment ends for reasons not caused by the employee.

Job.

Dismissal is due to the employee’s behaviour/performance; redundancy is because the job no longer exists (not the employee’s fault).

Disciplinary hearing — a formal meeting where the employee can present their case (with representation).

Investigate.

Decision — employer decides the outcome (no action, warning, or dismissal).

Outsourcing, automation, business downsizing, restructuring, relocation, or falling demand.

Appeal.

Right of appeal — the employee must have the chance to appeal the decision.

When an employee is dismissed without a valid legal reason and/or without following a fair procedure.

Clearly identify whether it is dismissal or redundancy, then explain the impacts/costs and apply to the case.

Percentage.

Labour turnover is the rate at which employees leave a business over a period of time, usually expressed as a percentage.

Lower recruitment and training costs because fewer employees need replacing.

Average.

Long-serving employees are experienced, make fewer mistakes and work more efficiently.

(Number of leavers during the period / Average number of employees) x 100.

The business may lack new ideas and become resistant to change.

Drive.

A push factor is a problem at the current job that drives employees away (e.g. low pay, poor conditions, poor management).

Attract.

Increased recruitment, selection and training costs from repeatedly hiring replacements.

A pull factor is an attraction elsewhere that encourages employees to leave (e.g. higher pay, better role, relocation).

Give both positive and negative impacts, explain why, and apply to the case business.

New employees take time to learn standards, so mistakes increase and customer experience can worsen.

High turnover increases recruitment and training costs and can reduce productivity, quality and customer service.

Flexible working offers alternatives to traditional working hours/locations, such as when, where or how much employees work.

Much.

Teleworking (remote working) where employees work from home using ICT to stay connected.

Teleworking and flexitime.

Wider recruitment pool and higher retention because roles suit parents/carers and others needing flexibility.

Employees choose start and finish times within agreed limits, often with core hours everyone must work.

Not all jobs suit it (e.g. manufacturing/retail) and communication may suffer.

It can reduce absenteeism and improve motivation because employees can balance work with personal commitments.

Whether flexible working is suitable for the specific role and the business, with one benefit and one drawback.

Supervision and communication can be harder, reducing team cohesion and control.

Formative (ongoing), summative (end), 360-degree (all directions), self-appraisal.

Low pay, lack of progression, poor management, boring work, better opportunities elsewhere.

(Number of staff leaving ÷ Average number of staff) × 100

The formal process of assessing an employee's performance — different methods suit different purposes.

Ongoing, developmental feedback during the year — focuses on improving performance through coaching.

(30 ÷ 200) × 100 = 15%

Recruitment costs, training costs, lost productivity, loss of experienced staff, damaged morale.

100 — expressed as a percentage.

Many staff leaving (costly). Staff staying (stable, experienced workforce).

End-of-period evaluation measuring overall performance against targets — often linked to pay/promotion.

Causes and consequences — explain why it's high AND what it costs.

Experienced leavers take expertise and relationships that are hard to replace.

Feedback from managers, peers, subordinates and sometimes customers — complete picture but time-consuming.

Brings in new ideas, skills and fresh perspectives.

Advertising, interviewing, agency fees — all before the new person even starts.

Employees evaluate their own performance — encourages reflection but may lack objectivity.

Poor pay, bad management, lack of progression, or competitive labour market.

Morale — constant departures create uncertainty and extra workload.